ots Ad hoc-Service: Infineon Technologies AG Q2/H

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München (ots Ad hoc-Service) - Infineon reports record earnings
and record sales for the second quarter and first six months of its
2000 financial year

Infineon Technologies AG, Munich, Germany, (FSE/NYSE: IFX), listed
on the Frankfurt and New York stock exchanges since March 13,
announced its key business figures for its second quarter, ended
March 31, and the first six months of its 2000 financial year.

Infineon's sales increased by 57 percent to EUR 1.53 billion in
the three months ended March 31 compared with EUR 977 million for
that period last year. EBIT (Earnings Before Interest, Minority
Interest and Taxes) grew significantly from EUR 8 million in the
second quarter of 1999 to EUR 253 million in the second quarter of
2000. In the second quarter, the consolidated net income came to EUR
146 million, compared with EUR 23 million in the same period in the
previous year. Thus the quarterly earnings per share amounted to EUR
0.24, compared with EUR 0.04 for the same period last year.

For the first six months of the 2000 financial year, Infineon
recorded a sales increase of 68 percent to EUR 3.07 billion compared
with EUR 1.83 billion for the same period last year. EBIT for the
first six months of the 2000 financial year amounted to EUR +497
million compared to EUR -46 million for the first six months of the
1999 financial year. In the first half of the 2000 financial year,
the consolidated net income came to EUR 279 million, compared with a
net loss of EUR 6 million through March 31, 1999. Thus the half year
earnings per share amounted to EUR 0,46 compared with EUR 0,01 for
the same period last year.

"With these record earnings, we deliver convincing proof that we
are consistently implementing our strategy of profitable growth in
the logic and DRAM business", commented Dr. Ulrich Schumacher,
President & CEO of Infineon Technologies AG. "Our stronger focus on
the rapidly expanding market segments of communications and the
Internet as well as our partnership with approximately 40 key account
clients throughout the world have led to a considerable improvement
in the profit margin", explained Schumacher.

Outlook

As in previous years, Infineon expects to report sales exceeding
average market growth figures in the current fiscal year as well,
primarily as a result of the expansion of its prodution capacities.
As the situation looks today, Infineon believes that the development
of earnings will remain positive in fiscal 2000 with the continued
expansion of the semiconductor market.

"On the basis of our strong position in terms of technology and
cost effectiveness, we expect to benefit from the outstanding
situation on the semiconductor market overproportionally. Our
flexibility as an enterprise listed on the stock exchange also
provides us with additional business options to increase our success,
through acquisitions or cooperations, for example", said Schumacher.

This discussion includes forward-looking statements about our
future business. These forward-looking statements are subject to a
number of uncertainties, including trends in demand and prices for
semiconductors generally and for our products in particular, the
receipt of all necessary approvals for our planned transactions, the
success of our development efforts, both alone and with our parners,
the success of our efforts to introduce new production processes at
our facilities and the actions of our competitors, as well as the
other factors mentioned herein. As a result, our actual results could
differ materially from those contained in the forward-looking
statements.